Question 1

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

Accepted Answer

A)  insurance.
B)  copayment.
C)  moral hazard.
D)  asymmetric information.E) All of the above
F) C) and D)

Question 2

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Accepted Answer

A)  preferred provider organization.
B)  health maintenance organization.
C)  diagnosis-related group system.
D)  regional health alliance.E) A) and C)
F) None of the above

Question 3

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Accepted Answer

A)  +3.
B)  +6.
C)  −2.
D)  +1.E) All of the above
F) C) and D)

Question 4

The burden of Medicaid costs is

Accepted Answer

A)  the sole responsibility of states.
B)  the sole responsibility of the Federal government.
C)  shared by the states and Federal government.
D)  shared by the states and the individual receiving the benefits.E) A) and D)
F) A) and C)

Question 5

U.S.hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Accepted Answer

A) True 
 B)False

Question 6

One way that the Patient Protection and Affordable Care Act (PPACA) hopes to foster competition among health insurance companies is through so-called insurance exchanges.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Accepted Answer

A)  Medicaid
B)  Medicare
C)  PPOs
D)  HMOsE) A) and C)
F) None of the above

Question 8

The following are supply factors in the health care market, except

Accepted Answer

A)  number of physicians and nurses.
B)  productivity of health care workers.
C)  medical technology.
D)  health care insurance.E) None of the above
F) A) and C)

Question 9

Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and copayments, account for what percentage of U.S.health care spending?

Accepted Answer

A)  21 percent
B)  35 percent
C)  44 percent
D)  17 percentE) All of the above
F) B) and D)

Question 10

After two years of being in effect by early 2016, one apparent implementation problem that the PPACA faced was that

Accepted Answer

A)  many young people wanted to participate, but most older people did not.
B)  many older people wanted to participate, but many younger ones did not.
C)  in each state, the pricing structure (health insurance rates)  was multitiered and too complex.
D)  the health insurance rates created an implicit wealth transfer from older to younger people.E) B) and C)
F) All of the above

Question 11

Defensive medicine

Accepted Answer

A)  solves the moral hazard problem.
B)  increases the demand and costs for health care.
C)  solves the principal-agent problem.
D)  is the same as preventive medicine.E) A) and B)
F) C) and D)

Question 12

About what percentage of the U.S.population had no health insurance for the entire year in 2015?

Accepted Answer

A)  3 percent
B)  9 percent
C)  25 percent
D)  33 percentE) A) and B)
F) C) and D)

Question 13

"Defensive medicine" means the same thing as "preventive medicine."

Accepted Answer

A) True 
 B)False

Question 14

Between 1960 and 2014, U.S.health care spending as a percentage of domestic output

Accepted Answer

A)  more than tripled.
B)  more than quadrupled.
C)  declined by one-half.
D)  remained relatively constant.E) A) and D)
F) All of the above

Question 15

Data on the income elasticity of demand for health care suggest that health care is a(n)

Accepted Answer

A)  inelastic good.
B)  private good.
C)  public good.
D)  normal good.E) None of the above
F) B) and D)

Question 16

It is generally agreed that in the long run the cost of private health insurance provided by employers is

Accepted Answer

A)  at the expense of business profits.
B)  at the expense of real wages.
C)  paid by taxpayers through government.
D)  included as taxable income for income tax purposes.Difficulty: 01 EasyE) A) and B)
F) B) and C)

Question 17

Which of the following nations has the highest percentage of its GDP spent on health care?

Accepted Answer

A)  Singapore
B)  Canada
C)  France
D)  United StatesE) None of the above
F) A) and B)

Question 18

(Consider This)  The PPACA created incentives for firms to

Accepted Answer

A)  expand their workforces.
B)  provide on-site medical care for their workers.
C)  reduce workers to part-time status.
D)  fire workers with medical problems.E) C) and D)
F) B) and C)

Question 19

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

Accepted Answer

A)  increase the demand for health care.
B)  increase the supply of health care.
C)  have no effect.
D)  decrease the demand for health care.E) None of the above
F) A) and B)

Question 20

The fundamental problem associated with the U.S.health care system is that

Accepted Answer

A)  the financing of health care through insurance has resulted in the underallocation of resources to the health care industry.
B)  frivolous malpractice suits have increased malpractice insurance premiums for doctors.
C)  at the margin, the value of health care services may be less than the value of alternative goods and services.
D)  there are too many general practitioners and not enough specialists.E) All of the above
F) B) and C)

Exam 24: Health Care

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

Correct AnswerverifiedShow Answer

About what percentage of the U.S.population had no health insurance for the entire year in 2015?

Correct AnswerverifiedShow Answer

After two years of being in effect by early 2016, one apparent implementation problem that the PPACA faced was that

Correct AnswerverifiedShow Answer

Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and copayments, account for what percentage of U.S.health care spending?

Correct AnswerverifiedShow Answer

One way that the Patient Protection and Affordable Care Act (PPACA) hopes to foster competition among health insurance companies is through so-called insurance exchanges.

Correct AnswerverifiedShow Answer

Defensive medicine

Correct AnswerverifiedShow Answer

(Consider This) The PPACA created incentives for firms to

Correct AnswerverifiedShow Answer

Which of the following nations has the highest percentage of its GDP spent on health care?

Correct AnswerverifiedShow Answer

It is generally agreed that in the long run the cost of private health insurance provided by employers is

Correct AnswerverifiedShow Answer

Data on the income elasticity of demand for health care suggest that health care is a(n)

Correct AnswerverifiedShow Answer

The fundamental problem associated with the U.S.health care system is that

Correct AnswerverifiedShow Answer

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

Correct AnswerverifiedShow Answer

Between 1960 and 2014, U.S.health care spending as a percentage of domestic output

Correct AnswerverifiedShow Answer

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Correct AnswerverifiedShow Answer

The following are supply factors in the health care market, except

Correct AnswerverifiedShow Answer

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Correct AnswerverifiedShow Answer

"Defensive medicine" means the same thing as "preventive medicine."

Correct AnswerverifiedShow Answer

The burden of Medicaid costs is

Correct AnswerverifiedShow Answer

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Correct AnswerverifiedShow Answer

U.S.hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Correct AnswerverifiedShow Answer

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